EBRD lending 40 mln euro for upgrade of Montenegro's main roads

Author: Macedonia's Government. Licence: All Rights Reserved.

BELGRADE (Serbia), December 7 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it is providing a 40 million euro ($47.2 million) loan to contribute to the financing of the reconstruction of 216 km of Montenegro’s main roads.

The loan will be extended in three tranches to the Ministry of Transport and Maritime Affairs, the EBRD said in a statement.

The first tranche of 10 million euro will be used for a road section between the towns of Rozaje and the village of Spiljane near the Serbian border.

The second and third tranches, each of 15 million euro, are expected to be made available in 2018 and 2019 for the upgrade of the Podgorica-Danilovgrad and Tivat-Jaz road sections in the south, respectively.

Some of Montenegro’s main roads are winding through the mountains and some lie next to the sea, which makes them very scenic, but also vulnerable to weather shocks, the EBRD Director for Transport, Sue Barrett, said.

"In order to help avoid the risk of erosion, landslides and floods, the EBRD-financed rehabilitation project will include improvements such as increased drainage capacity, reinforced road embankments and special bridge designs."

The investment will facilitate the flow of goods and people, reduce transport costs and increase road safety, the Montenegrin finance minister, Darko Radunovic, said in the statement.

"Cross-border and national transport infrastructure are crucial for further growth and investment. Good-quality road connections can greatly expand access to jobs, markets, schools and hospitals in Montenegro. In particular, it will boost the tourism sector, an important contributor to the economy," the head of the EBRD’s Office in Podgorica, Jaap Sprey, noted.

The EBRD has invested 530 million euro in over 50 projects in Montenegro. According to the EBRD’s latest economic forecast, the Montenegrin economy will grow by 3.7% this year and 3.3% in 2018.